Abdullahi Sule, the governor of Nasarawa, has clarified that northern leaders are not opposed to President Bola Tinubu’s administration.
In an interview on Channels Television on Tuesday, Sule explained that the northern governors’ objection is solely directed at the proposed change to the value-added tax (VAT) sharing formula.
On Sunday, the Northern States Governors Forum (NSGF), representing 19 northern states, formally rejected the proposed tax amendment bill.
In a communiqué issued after their meeting, the northern governors expressed their disapproval of shifting VAT distribution to a derivation-based model, arguing that such a change would be unfavorable to the northern region.
“This is because companies remit VAT using the location of their headquarters and tax office and not where the services and goods are consumed,” the northern governors had said.
On October 13, President Bola Tinubu asked the national assembly to consider and pass four tax reform bills.
The proposed legislations are the Nigeria tax bill, tax administration bill, and joint revenue board establishment bill.
The Nasarawa governor said the northern leaders would not oppose the administration of Tinubu after working hard for his victory in the election.
He added that the proposed legislation on the sharing formula of VAT based on the derivation model is “unfair” to the north.
“The issue of VAT was the last item that was discussed during the meeting of northern leaders,” Sule said.
“After discussing various issues on mining and agriculture, the last issue was the issue of VAT.
“When the news came out, people were saying, ‘why are the governors of the north against President Tinubu?’.
“We cannot bring President Tinubu as president; the north came in heavily to make sure Tinubu became president and then turned around to be against him.
“We started the meeting by commending him (Tinubu) on so many initiatives, including the livestock initiative.
“It is a forum (northern) made up of APC and PDP members alongside other parties, including those with no party — the traditional rulers. We sat together and decided that the law was going to be unfair to the north.
“We have no problem whatsoever, even though it is another hardship to the people (plan to increase VAT to 10 percent).
“Nobody is against any initiative. Nobody is worried that VAT is being raised to so and so percentage. We are talking about the sharing formula of the VAT.
“I think whether we are APC, PDP, APGA, or whatever party, we have a right to say we agree with this or disagree. It has nothing to do with disliking anybody.”
